But you never see the big picture–a full page–that can reward you with the story you didn’t think you wanted to read, but are lured in either by the placement of the story on the page or the art that goes with it. The larger screen should have been able to offer a different experience than the one on the first two versions of the Kindle.
Let’s rephrase: the larger screen is able to offer a different experience, it’s just not yet doing it. I’m guessing that will happen within a year; complex systems (that work) grow out of simple systems (that work).
Eat Sleep Publish is a Seattle-based blog that explores the difficulties and opportunities currently facing the publishing industry. 
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Interesting point, though: The one thing I value about a newspaper or magazine is print’s ability to surprise me with something I wouldn’t have thought I was interested in reading. Haven’t really found an equivalent experience online yet. But it will happen.
The digital format that figures that trick out will probably see rapid adoption. I think it’s one of the reasons radio sticks around; people like to have other people pick (some of) their media for them.